GOP Finally Discovers Obama's Achilles Heel: Just Let Him Do What He Does... And Encourage It!

Tyler Durden's picture




 

Two weeks ago when discussing the latest lunacy surrounding America's exponential curve #1 also known as its debt balance, we suggested what the GOP election strategy should be: "[if] the debt ceiling becomes a sticking point at the election, Obama's chances of reelection plunge. Which makes us wonder - will Republicans grasp that the paradox of defeating Obama is precisely in giving him a carte blanche on all the stimulus programs he wants? Because if Congress approves another $200, 300 or even $400 billion in stimulus pork (the only thing better than one Solyndra? One thousand Solyndras!) the Treasury will drown in the need to raise hundreds of billions more, and will in fact hit the ceiling well in advance of the elections. As for the stimulus projects themselves, they will crash and burn just like all centrally planned endeavors, and actually result in a far worse outcome than if they had never been attempted. [Because] the best way to finally get back to a fiscally prudent regime? Why go to town, of course." We were delighted to discover that our policy anti-recommendation has finally been adopted. Because as the WSJ reports when it comes to the latest payroll tax extension we find something quite stunning: "House Republican leaders said Monday they would introduce a bill extending the payroll-tax break for the rest of the year without finding spending cuts to offset the program's cost. The proposal marks a major shift for Republicans, who previously had insisted that the costs of extending a trio of provisions expiring at the end of the month be offset with spending cuts." That's right - no offsetting spending cuts. Which means one thing - much more debt.  How much more? At least $160 billion much. Which means that the debt ceiling discussion will hit not in November as we speculated previously, but potentially as soon as September.

It also means that by the time the GOP candidate is debating Obama the primary topic of discussion will be just how much the Administration is plundering from government retirement and pension accounts to keep the country under the latest and greatest (and just upwardly revised) $16.4 trillion debt ceiling.

Stone McCarthy has the following estimate on the cost of the program:

We've heard reports that the cost of extending all of the provisions is about $160 billion, although we've seen no official scoring. That figure is in the right ballpark, based on CBO's scoring of the two-month extension passed last December.

 

The following table provides an estimate of extending the provisions for 10-months based on a simple extrapolation of the two-month cost. Based on that calculation, extending the payroll tax cut for 10 months would cost $105.0 billion, and add a like amount to the deficit if it's not offset.

And some more on this shocking change in strategy by the GOP:

Lawmakers agreed at the end of 2011 to extend the payroll-tax break, federal jobless benefits and a measure to reimburse doctors for treating Medicare patients for two months. A bipartisan group of 20 lawmakers has been working to find an agreement to extend the provisions for the rest of the year, but have been struggling to agree on ways to offset the cost of the programs, about $160 billion in total.

 

The GOP leaders said in their statement Monday that since Democrats hadn't agreed to their proposed spending cuts, House Republicans plan to "introduce a backup plan that would simply extend the payroll-tax holiday for the remainder of the year while the conference negotiations continue regarding offsets, unemployment insurance, and the 'doc fix.' "

 

Over the weekend Republican negotiators had proposed extending the payroll-tax break for 10 months without finding ways to offset its cost, though the GOP still wanted the federal jobless benefits and doctor's reimbursement measure to be balanced with spending cuts, aides from both parties said.

If we are correct, and if indeed this "major shift" in GOP tactics is predicated by finally grasping that the only way to let Obama blow himself up is to do precisely what he is doing and in fact to encourage him to spend, spend, spend, watch for the GOP to fundamentally change their approach to everything and to encourage hundreds of billions in idiotic fiscal programs which will achieve nothing at all, but merely send the US debt to previously unseen stratospheric heights at an exponential rate in virtually no time at all.

And here is the official GOP statement:

Boehner, Cantor, McCarthy Statement on Payroll Tax Cut Conference Negotiations

House Speaker John Boehner (R-OH), Majority Leader Eric Cantor (R-VA), and Majority Whip Kevin McCarthy (R-CA) today released the following statement on the status of the payroll tax cut conference negotiations:

“We support the work of our conference negotiators and continue to support a responsible resolution that extends current payroll tax relief, reforms and extends unemployment insurance, and includes a Medicare ‘doc fix.’  Republicans have attempted to reach an agreement and negotiated in good faith for months, and we will continue to do so.  Unfortunately, to date, Democrats have refused virtually every spending cut proposed – insisting instead on job-threatening tax hikes on small business job creators – and with respect to the need for an extension of the payroll tax cut, time is running short.

“Because the president and Senate Democratic leaders have not allowed their conferees to support a responsible bipartisan agreement, today House Republicans will introduce a backup plan that would simply extend the payroll tax holiday for the remainder of the year while the conference negotiations continue regarding offsets, unemployment insurance, and the ‘doc fix.’  If Democrats continue to refuse to negotiate in good faith, Republicans may schedule this measure for House consideration later this week pending a conversation with our members.  Democrats’ refusal to agree to any spending cuts in the conference committee has made it necessary for us to prepare this fallback option to protect small business job creators and ensure taxes don’t go up on middle class workers.

“This is not our first choice.  Our goal is to reach a responsible agreement in conference.  But in the face of the Democrats’ stonewalling and obstructionism, we are prepared to act to protect small businesses and our economy from the consequences of Washington Democrats’ political games.”

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Mon, 02/13/2012 - 17:03 | 2155085 Stoploss
Stoploss's picture

The scary part is it's taken them 4 years to figure that out.

Mon, 02/13/2012 - 17:13 | 2155125 ShankyS
ShankyS's picture

And que TD's call at a Congressional hearing in 5..4..3.....

Mon, 02/13/2012 - 17:20 | 2155150 redpill
redpill's picture

It's all the same game. People even get hung up on terms like fascism or socialism, if it's "extreme left" or "extreme right."  They are all nothing but rhetorical means to an end.  Next time it will be called something else.  What it gets called is meaningless, the actions of government are always the same.  They take more and more until they have it all, and then try to hold on to it all for as long as possible.

Mon, 02/13/2012 - 17:27 | 2155190 trav7777
trav7777's picture

this is a great plan by the WSJ!!!

It's like letting your kids burn the house down to show them how foolish it is to play with matches.  It's all about being able to say "I told you so" when you are shivering under the overpass.

Mon, 02/13/2012 - 17:30 | 2155210 riphowardkatz
riphowardkatz's picture

You gotta hit rock bottom before you can begin the road to recovery. Bring on the bottom!

Mon, 02/13/2012 - 17:47 | 2155288 JW n FL
JW n FL's picture

 

 

http://www.youtube.com/watch?v=4RcZw68FqLs&feature=g-all-lik&context=G2a4b37aFAAAAAAAAKAA

Abraham Lincoln Vampire Hunter Trailer

 

its not fr from the truth.. given the fact that Abe fought off the Vampire Bankers at his back!

Mon, 02/13/2012 - 17:53 | 2155316 markmotive
markmotive's picture

It's the same 'ol story. Politics trumps economics...leading to an ultimate currency collapse.

http://seekingalpha.com/article/358571-protect-against-the-currency-system-s-final-catastrophe

Mon, 02/13/2012 - 19:46 | 2155707 economics1996
economics1996's picture

Plan on the bankrupcy of the federal government by 2018 at the latest.  By that I mean there will not be a federal government, only a few remaining thugs.

Mon, 02/13/2012 - 23:32 | 2156333 Breaker
Breaker's picture

"Plan on the bankrupcy of the federal government by 2018 at the latest.  By that I mean there will not be a federal government, only a few remaining thugs."

So the only difference between now and 2018 is there will be fewer thugs?

Tue, 02/14/2012 - 01:08 | 2156473 Clinteastwood
Clinteastwood's picture

Ah yes, the law of unintended consequences for the arrogant.  The most terrible thing about God is that he will let you have your own way.

Mon, 02/13/2012 - 18:52 | 2155523 jekyll island
jekyll island's picture

Good old Abe was unable to fight off the vampire bankers actually.  The Civil War ushered in the change to a Federalist society and paved the way for central banking as we have come to know and love.  Lincoln needed the money to pay for the war so had to climb in bed with the bankers, kinda tarnishes his legacy, but he did what he thought he had to do to keep the US from splitting in two.

Mon, 02/13/2012 - 23:04 | 2156277 BigJim
BigJim's picture

http://www.squidoo.com/abraham-lincoln

that page gives you a flavour of the man behind the 'honest Abe' myth... google some more and you'll see he only cared about preserving the Union, at any cost. He didn't give a damn about slavery, only about protecting the interests of his corporate masters.

Mon, 02/13/2012 - 17:33 | 2155224 A Lunatic
A Lunatic's picture

Yes, and it makes me feel all warm and fuzzy and represented.

 

 

Mon, 02/13/2012 - 17:59 | 2155342 Silver Bug
Silver Bug's picture

Obama is shooting himself in the foot everyday. Ron Paul is our choice. Ron Paul 2012!

 

http://ronpaul2012blog.blogspot.com/

Mon, 02/13/2012 - 18:53 | 2155527 FrankDrakman
FrankDrakman's picture

He may be shooting himself in the foot, but he's going to shoot everyone else in the mouth first...

 

"The Secretary shall develop oral healthcare components that shall include tooth-level surveillance"

Mouth drones, bitchez!

 

Mon, 02/13/2012 - 20:07 | 2155824 eatthebanksters
eatthebanksters's picture

he's already shot his mouth off...

Mon, 02/13/2012 - 18:57 | 2155544 EmileLargo
EmileLargo's picture

The comparison of Obama to a kid trying to play with matches is quite apt. 

Mon, 02/13/2012 - 22:14 | 2156171 MarketWatchTerrorist
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There was actually some discussion of that sort being bantered about the White Supremacist community back in 2007/2008.  The idea was to help elect the nigger and let him inevitably fuck the country up so bad that it collapsed and whites could seize their homeland in the Pacific North West.

 

So far so good, as far as that goes.

Tue, 02/14/2012 - 05:45 | 2156743 EmileLargo
EmileLargo's picture

A classic example of Obama not capable of being criticised because he's black. As racist a position as those taken by white supremacists.

The problem with Obama is not that he is black, his problem is that he understands almost nothing about how the economy works and has spent his whole life as an activist and an academic. He is completely at the mercy of whicever set of advisers he is surrounded by. 

Mon, 02/13/2012 - 17:56 | 2155324 mayhem_korner
mayhem_korner's picture

People even get hung up on terms like fascism or socialism, if it's "extreme left" or "extreme right."

 

I wonder if, when the SHTF, the looters and shooters will ask anyone what camp their in.

Mon, 02/13/2012 - 18:50 | 2155516 Stack Trace
Stack Trace's picture

When a man is hungry enough political affiliations do not matter.

Mon, 02/13/2012 - 17:14 | 2155130 smb12321
smb12321's picture

LOL - I'm not even sure why the GOP tries any more   They know - as does the world - that all their talk will affect the debt at most a few percent.  The funny thing about bankruptcy is that while it is inevitable it is never predictable.  I can see deficits of over $20 trillion with idiots still snatching treasuries at 1%.  WHen it hits, it will hit hard.

Mon, 02/13/2012 - 17:28 | 2155193 trav7777
trav7777's picture

you calling the FRBNY idiots?  'Cuz they are the only ones buying.

Mon, 02/13/2012 - 17:38 | 2155248 Alea Iactaest
Alea Iactaest's picture

People talk about parabolic balance sheet expansion, ZIRP4EVA and QE3 as examples that "the Fed doesn't know what it's doing." I think the Fed knows exactly what it's doing.

People say that debts that can't be paid back won't be paid back. Well what if this isn't about repayment?

Forget all the economics you've been taught, you're about to enter the Twilight Zone.

What if the plan is to get sovereigns so deeply in debt to the central banks that the only way out is to follow the Greek model of acquiescence and austerity? No debt jubilee for you...

If this is the goal then it makes sense to be the buyer of last resort and take on all assets, toxic and otherwise, as they all represent a claim on ownership. (Not like anything is being purchased with real monie.) Forget the payback, all your serfs are belong to us!

Bow down to your new masters (same as the old ones)!

Mon, 02/13/2012 - 17:47 | 2155291 LetThemEatRand
LetThemEatRand's picture

And the Red team and Blue team can then fight each other in the FEMA camps over whose fault it was (between the Red Team and Blue Team).   It's a floor wax AND a desert topping....

Mon, 02/13/2012 - 19:53 | 2155771 harposox
harposox's picture

Holy Jesus, Alea! You're like a kernel of truth adrift in the sands of stupidity. This is indeed the plan, as I see it.

Mon, 02/13/2012 - 18:57 | 2155543 jekyll island
jekyll island's picture

Calling NY Fed idiots would be stupid.  US taxpayers are the idiots, we are the bagholders that are allowing them to do this.

 

 

Tue, 02/14/2012 - 01:15 | 2156488 HardAssets
HardAssets's picture

Who cares what the politicians in the GOP or Dem party do?  Theyre all exactly the same, a bunch of paid off thieves helping their bosses steal everything they can before it all comes crashing down. Except for Ron Paul, there's not a bit of difference between any of them. The American public is too dumbed down to vote for Paul in enough numbers, so we're in deep trouble.

Oh well, - - -eat, drink, and be merry, for tomorrow . . . . is really gonna suck Big Time.

Mon, 02/13/2012 - 17:20 | 2155153 Gully Foyle
Gully Foyle's picture

Tingo (Pascuense)

To borrow from a friend until he has nothing left.

Mon, 02/13/2012 - 18:33 | 2155454 CrashisOptimistic
CrashisOptimistic's picture

Geithner can again hit the retirement accounts to keep the ball rolling past November.  This strategy will fail.

Mon, 02/13/2012 - 17:21 | 2155160 macholatte
Mon, 02/13/2012 - 17:28 | 2155195 trav7777
trav7777's picture

what black person didn't?

Mon, 02/13/2012 - 17:48 | 2155296 francis_sawyer
francis_sawyer's picture

round where I drive... When you see an 'Obama '08' bumper sticker...

THEY KNO WHOZ INSIDE!

http://www.youtube.com/watch?v=l-O5IHVhWj0&ob=av3e

Mon, 02/13/2012 - 18:10 | 2155379 FEARTHESHARK
FEARTHESHARK's picture

Right, and every southern, white Republican is a racist who voted for McCain because they'd never vote for a black guy, is that it?  You're a dick.

Mon, 02/13/2012 - 18:33 | 2155448 bob_dabolina
bob_dabolina's picture

Mccain didn't get 94% of the white vote...

The BLACKS made it about race....vociferously so, as Samuel L. Jackson at least had the balls to say it, instead of some bullshit falsehood platitude like "I voted for him because he's a great guy not cause he's black" 

Could you imagine what would have happened had Mccain received 94% of the white vote? 

Mon, 02/13/2012 - 18:44 | 2155496 LetThemEatRand
LetThemEatRand's picture

Yes.  Anyone who would "never vote for a black guy" is pretty much by definition racist.   I think the more appropriate question is whether it is really racist for a black person in America to want a black guy as President.  It's no different from a Texan wanting a Texan in the Whitehouse -- shared experience, common viewpoint, etc.   It was also historic -- an ethnic group that was subjected to slavery and who suffered open segregation just a couple of generations ago, now putting their first group member into the highest office.  It doesn't take a racist to want to do that.   Most black people have experienced racism in their lives, and it also is reasonable to assume that a black president would do more than a white president to address those issues.  Wrong, but reasonable.   Pure self-interest.   I'd also venture to say that most black persons who voted for Obama who have voted in the past, voted for a white guy (or woman) before they voted for Obama.  Whereas the racist white guy in your example would NEVER vote for a black guy.  This is just another one of those issues that creates great talk radio for the idiot listeners who gobble this kind of shit up with a spoon.

Mon, 02/13/2012 - 19:05 | 2155597 trav7777
trav7777's picture

most PEOPLE have experienced racism in their lives.  If blacks have experienced racism it is at the hands of mexicans or other blacks, not whites.

The VAST majority of whites aren't racist; just witness how savage they become if you disturb their little insane racial orthodoxy.  On the other hand, among other races, racism is overt and unapologetic.  It's because they have been convinced by the same racial orthodoxy that it is IMPOSSIBLE BY DEFINITION for them to be racist.

They will argue to the point of violence over this and YOU are a racist for disputing it.

Blacks CLAIM they experience racism because they attribute their lack of success as as a result of some sinister, unseen racism.  I take nothing for a given, so you need to prove your shit about blacks experiencing racism or else it is just more racial orthodoxy bullshit.

Mon, 02/13/2012 - 20:23 | 2155878 LetThemEatRand
LetThemEatRand's picture

"If blacks have experienced racism it is at the hands of mexicans or other blacks, not whites."

I'm sorry, but that's probably the most ridiculous statement I have ever seen on this site.  I completely agree with that racism is not limited to whites and that there are many hypocrites in the world, but the idea that racism is now confined to everyone but whites is simply laughable.   You are a joke.  You are so completely immersed in your ideology that you couldn't see a racist white person if he came at you with a white hood on his head.  You'd probably say that he just likes wearing pillows and that in any event he is just a victim of reverse racism so he has no choice but to burn crosses and stuff.   

"Blacks CLAIM they experience racism because they attribute their lack of success as as a result of some sinister, unseen racism."  All of them, huh?   Now, what is the definition of racism again?    

Mon, 02/13/2012 - 19:01 | 2155563 trav7777
trav7777's picture

I have no fuckin clue where in the hell you came up with this shit.

The country is 70% white...Muhcane had nowhere near a landslide majority of the white vote.

Mon, 02/13/2012 - 19:56 | 2155662 Max Fischer
Max Fischer's picture

 

 

.....what black person didn't?

The number of blacks that voted for Obama solely because he's black is probably not much different than the number of whites that voted against him because he's black, too. The argument is a wash, at best....lots of racists, bigots and rednecks in this country. Kentucky fried Amuurica.

 

Sat, 05/26/2012 - 02:13 | 2464679 Max Fischer
Max Fischer's picture

 

 

Bill Maher 5/25

Mon, 02/13/2012 - 17:35 | 2155234 nodhannum
nodhannum's picture

The Klan with the tan!

Mon, 02/13/2012 - 18:25 | 2155431 10mm
10mm's picture

When the country one day has a real black president,i mean 100% African American,he or she will say "Now im The First Real Black President".And if im around,ill gleefully smile and agree.

Mon, 02/13/2012 - 19:06 | 2155607 trav7777
trav7777's picture

that would be a very dark day in this country's history, given the abysmal failure of black leadership the globe over.

Tue, 02/14/2012 - 03:38 | 2156653 respect the cock
respect the cock's picture

What about the coach of the Pittsburgh Steelers?

Mon, 02/13/2012 - 22:16 | 2156178 MarketWatchTerrorist
MarketWatchTerrorist's picture

I voted for McCain because he's white.  Oh, that makes me a horrible racist that should be murdered in the eyes of the main stream media and contemporary American culture.

 

Hence why I do not watch TV, tired of seeing white women paried with niggers in every commercial and on every show.  Too bad 99.99999% of women are too fucking stupid to do anything other than what the TV tells them.

Mon, 02/13/2012 - 23:00 | 2156266 tarsubil
tarsubil's picture

So your fat girlfriend ran off with a black dude. Hey, buddy, it is her loss.

Tue, 02/14/2012 - 01:52 | 2156543 MarketWatchTerrorist
MarketWatchTerrorist's picture

Well actually it went like most relationships involving black men go.

 

He gave her 3 STDs, ran off after she was pregnant, got back with her a year later then beat her into a coma after he got drunk on malt liquor and she said something he didn't like, then some warrants caught up with him and he's currently serving 5 years in the state prison.

 

Even Obama's father ran off on his mother.  The hilarity is not lost on me.

Mon, 02/13/2012 - 17:25 | 2155179 ACP
ACP's picture

Only took them 3 years to catch on.

Mon, 02/13/2012 - 17:32 | 2155219 SheepDog-One
SheepDog-One's picture

90% at least would still vote for ObaMao today I have no doubt.

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